National Sugar Refineries Corp v. NLRC Case Digest
National Sugar Refineries Corp v. NLRC Case Digest
National Sugar Refineries Corp v. NLRC Case Digest
NLRC
Chester Cabalza recommends his visitors to please read the original & full text of
the case cited. Xie xie
!.R. No. "#"$%" &arch '() "**+
N,-./N,L S0!,R R12.N1R.1S C/R3/R,-./N) petitioner) vs. N,-./N,L L,4/R
R1L,-./NS C/&&.SS./N and N4SR S031R5.S/R6 0N./N) 73,C.809 -0C3)
respondents.
2acts:
3etitioner National Sugar Refneries Corporation 7N,S0R12C/9) a corporation ;hich
is full< o;ned and controlled b< the !overnment) operates three 7+9 sugar refneries
located at 4u=idnon) .loilo and 4atangas. 3rivate respondent union represents the
former supervisors of the N,S0R12C/ 4atangas Sugar Refner<.
.n "*>>) petitioner implemented a ?ob 1valuation 7?19 3rogram a@ecting all
emplo<ees) from ran=AandAfle to department heads. 8e glean from the records that
for about ten <ears prior to the ?1 3rogram) the members of respondent union ;ere
treated in the same manner as ran=Aand fle emplo<ees. ,s such) the< used to be
paid overtime) rest da< and holida< pa< pursuant to the provisions of ,rticles >$) *+
and *( of the Labor Code as amended.
8ith the implementation of the ?1 3rogram) members of respondent union ;ere reA
classifed under levels SAB to SA> ;hich are considered managerial sta@ for purposes
of compensation and benefts.
.n &a< "**#) petitioner N,S0R12C/ recognized herein respondent union) ;hich ;as
organized pursuant to Republic ,ct N/. %$"B allo;ing supervisor< emplo<ees to
form their o;n unions) as the bargaining representative of all the supervisor<
emplo<ees at the N,S0R12C/ 4atangas Sugar Refner<.
.n ?une "**#) the members of herein respondent union fled a complainant ;ith the
executive labor arbiter for nonApa<ment of overtime) rest da< and holida< pa<
allegedl< in violation of ,rticle "## of the Labor Code.
.n "**") 1xecutive Labor ,rbiter 3ido directed N,S0R12C/ to pa< for the ;ages
complained of.
/n appeal) in a decision promulgated on ?ul< "**") respondent National Labor
Relations Commission 7NLRC9 aCrmed the decision of the labor arbiter on the
ground that the members of respondent union are not managerial emplo<ees) and)
therefore) the< are entitled to overtime) rest da< and holida< pa<. Respondent NLRC
declared that these supervisor< emplo<ees are merel< exercising recommendator<
po;ers subDect to the evaluation) revie; and fnal action b< their department heads.
.ssue:
8EN the Supervisors are considered &anagerial 1mplo<ees and should no longer
receive overtime) rest da< and holida< pa<.
Ruling:
6es
Ratio:
F,rt. >' Coverage. G -he provisions of this title shall appl< to emplo<ees in all
establishments and underta=ings ;hether for proft or not) but not to government
emplo<ees) managerial emplo<ees) feld personnel) members of the famil< of the
emplo<er ;ho are dependent on him for support) domestic helpers) persons in the
personal service of another) and ;or=ers ;ho are paid b< results as determined b<
the Secretar< of Labor in ,ppropriate regulations.
F,s used herein) Hmanagerial emplo<eesH refer to those ;hose primar< dut< consists
of the management of the establishment in ;hich the< are emplo<ed or of a
department or subdivision thereof) and to other oCcers or members of the
managerial [email protected] 71mphasis supplied.9
.t is the submission of petitioner that ;hile the members of respondent union) as
supervisors) ma< not be occup<ing managerial positions) the< are clearl< oCcers or
members of the managerial sta@ because the< meet all the conditions prescribed b<
la; and) hence) the< are not entitled to overtime) rest da<.
Iuintessentiall<) ;ith the promotion of the union members) the< are no longer
entitled to the benefts ;hich attach and pertain exclusivel< to their positions.
1ntitlement to the benefts provided for b< la; reJuires prior compliance ;ith the
conditions set forth therein. 8ith the promotion of the members of respondent
union) the< occupied positions ;hich no longer met the reJuirements imposed b<
la;. -heir assumption of these positions removed them from the coverage of the
la;) ergo) their exemption therefrom.
,s correctl< pointed out b< petitioner) if the union members reall< ;anted to
continue receiving the benefts ;hich attach to their former positions) there ;as
nothing to prevent them from refusing to accept their promotions and their
corresponding benefts. ,s the sa<ing goes b<) the< could not) as a simple matter of
la; and fairness) get the best of both ;orlds at the expense of N,S0R12C/.
3romotion of its emplo<ees is one of the Durisprudentiall<Arecognized exclusive
prerogatives of management) provided it is done in good faith. .n the case at bar)
private respondent union has miserabl< failed to convince this Court that the
petitioner acted implementing the ?1 3rogram. -here is no sho;ing that the ?1
3rogram ;as intended to circumvent the la; and deprive the members of
respondent union of the benefts the< used to receive.